A.R. NIVETHITHAA BE 1 ST YEAR V.V. COLLEGE OF ENGINEERING TISAIYANVILAI
A.R. NIVETHITHAA
BE 1ST YEAR
V.V. COLLEGE OF ENGINEERING
TISAIYANVILAI
DIGITAL FIANCIAL LITERACY
India is a developing economy with focus onachieving sustainable development. To achievesustainable development, it is important that allsections of the society get equal opportunity andparticipate in nation building.
Lack of awareness of digital financialliteracy, especially among the rural population isa major challenge in the country, more so in lightof the Government’s recent demonetization andplans to make India a cashless economy. There isan urgent need to create awareness among thecitizens, especially in rural and semi-urban areasregarding digital finance services and alsoenable/support in access to digital financeservices options.
Digital financial inclusion refers to digital
access to and use of formal financial services by
excluded and marginalised sections of society. To
serve this purpose, the services introduced are
known as Digital Financial Services (DFS). These
are designed to suit customers’ needs and are
delivered responsibly at a cost which is both
affordable to customers and sustainable for
providers. There are three key components of any
such digital financial services: a digital
transactional platform, retail agents, and the use
by customers and agents of a device, usually a
mobile phone, to transact via the platform
It’s a means by which unbanked population
is increasingly gaining access to financial
services through digital channels. Banks,
microfinance institutions, mobile operators, and
third party providers are leveraging mobile
phones, point-of-sale devices, along with
networks of small-scale agents, to offer basic
financial services at greater convenience, scale
and lower cost than traditional banking allows.
The major types of DFS
1. Cards
2. USSD
3. AEPS
4. UPI
5. Wallet
CARDS
WHAT ARE CARDS?
These are usually issued by banks
and can be classified on the basis of
their issuance, usage and payment
by the card holder.
There are three types of cards:
Debit cards,
Credit cards and
Prepaid cards
BANK CARDS
Type of Cards
DEBIT CARD Issued by the Bank where you have an
account.
CREDIT
CARD
These are issued by banks / other
entities approved by RBI. Unlike debit
cards, in case of credit cards, a customer
can also withdraw beyond the amount of
money present in his bank account.
PRE-PAID
CARD
These are pre-loaded from a customer’s
bank account. Can be used for limited
amount of transaction.
HOW TO USE DEBIT/CREDIT CARDS? To withdraw money from an ATM, user
needs to insert his/her debit/credit card and
type in your unique PIN Number (4 digits)
which is provided by the bank. The
maximum amount that can be withdrawn
per day is set by the bank.
With debit card, user can also use the ATM
to carry out other financial and non-
financial transactions such as finding out
bank balance, depositing cheque or money,
getting a mini statement, etc. without
visiting the bank branch.
PROCESS FLOW FOR SHOPPING AT MAJOR RETAIL
STORES
Why should I use these
cards?
Use your card to shop anywhere.
Can be used to pay at shops, ATMs, wallets, Micro ATMs, online shopping.
Both Debit and Credit cards can be used to withdraw cash from ATM, purchase of goods and services at Point of Sale (POS) and online purchase.
Can be used to pay all kinds of utility bills
Consumer can book Tickets (Airline/Railway/Bus), book hotels, and can use at restaurants to make payments.
Use your card to pay for any service at any location where there is a Card reader / POS machine
How to get a Card?
Consumers can apply for Debit/
Rupay/Credit cards at all the Public
and Private sector Banks.
Citizens can get a debit card by
submitting the application to his
respective bank branch.
Citizens can also exchange their debit
cards with Rupay Card
Citizens who do not have bank
account has to first open the account
to get the card.
As per Government orders, all the
Jhan Dhan account holders will be
issued Rupay Cards.
USSD(UNSTRUCTURED SUPPLEMENTARY
SERVICE DATA)
WHAT IS USSD?
This service allows every customer to access banking
services with a single number irrespective of the
telecom service provider, make of the mobile handset
or the region
It is offered through a National Unified USSD
Platform (NUUP) on a short code *99#
It can be used for payments upto Rs. 5000 per day per
customer
WHAT DO YOU NEED?
Account in a bank
Any mobile phone on GSM network
Consumers Account should have registered mobile
number in the bank
HOW DO I USE IT?
Visit your branch to link your mobile number to your
bank account (Can be done at ATM or online)
You will get Mobile Money Identifier (MMID) and
Mobile Pin (MPIN)
Remember the MPIN
WHAT ARE THE BENEFITS OF USSD?
Simple and easy to use
Works on almost all GSM handsets
GPRS connection (Internet data
plan) not required
Works even while on the
move
More secure than SMS
STEPS TO USE USSD FACILITY
1. Link your mobile number to your bank account
2. Dial *99# from your phone
3. Fill in the first 3 letters of your bank against short name or first 4 letters of IFSC
4. Choose “Fund-Transfer-MMID” option
5. Enter the payee’s mobile number and MMID
6. Enter the amount and your MPIN, leave a space and enter the last 4 digits of your account number.
SERVICES AVAILABLENon- Financial services:
Balance Enquiry - User can check the available balance of the bank account linked to the mobile number.
Mini Statement - User can generate mini account statement for the bank account linked to the mobile number.
Know MMID *(Mobile Money Identifier) - User can know the MMID allotted by the bank to the account during mobile banking registration.
Generate/Change M-PIN - User can Generate/Change the M-PIN (Mobile PIN) which is like a password and used for authenticating financial transactions.
Financial services
Fund Transfer using Mobile No. and MMID- User
can transfer funds by using MMID and Mobile number
of the Beneficiary.
Fund Transfer using IFSC and Account No. -
User can transfer fund by inputting IFS code and
Account number of the Beneficiary.
AADHAAR ENABLED PAYMENT SYSTEM -
AEPS
Aadhar Enabled Payment System (AEPS) is a payment service empowering a
bank customer to use Aadhaar as his/her identity to access his/ her respective
Aadhaar enabled bank account and perform basic banking transactions.
It allows bank-to-bank transaction at PoS (Micro ATM) with the help of
Banking Correspondent (BC)/VLE.
The user has to seed his/her account with their Aadhaar number at bank or
with the help of BC/VLE.
User can do as many transactions at any AEPS point without any PIN or
password.
AADHAAR ENABLED PAYMENT SYSTEM -
AEPS
Following banking transactions can be
done using an AEPS:
Balance Enquiry
Cash Withdrawal
Cash Deposit
Aadhaar to Aadhaar Funds Transfer
Purchase at Fair Price Shops with AEPS
What do I need, to activate the AEPS?
IIN (Identifying the Bank to which the customer is
associated)
Aadhaar Number
Fingerprint captured during their enrolment
Following are the key steps for an
AEPS transaction
Go to a Micro ATM or Banking Correspondent
Choose which transaction to do
Provide fingerprint on
scanner
Provide your Bank name and
Aadhaar
Take the print slip after successful transaction
Why should I use it?
Easy to use, safe and secure payment platform to avail benefits by using Aadhaar
number & finger prints.
Based on the demographic and biometric/iris information of an individual, it
eliminates the threat of any fraud and non-genuine activity.
Facilitates disbursements of Government entitlements like NREGA, Social Security
pension, Handicapped Old Age Pension etc. of any Central or State Government
bodies, using Aadhaar authentication.
Facilitates inter- operability across banks in a safe and secured manner
Enables banks to extend financial services to the unreached clients beyond their
branch network ,as beneficiaries of the BCs are mostly located at unbanked and
under banked areas.
No transaction charges are levied at present.
No need to remember the bank account number.
Consumers having biometric device can do the transactions at home using computer,
android Phone/Tablets. Some Tablets with inbuilt biometric devices are available and
can be used for doing transactions.
ADHAAR ENABLED PAYMENT SYSTEM
(AEPS)
UPI (UNIFIED PAYMENTS INTERFACE)
UPI (Unified Payments Interface
UPI (Unified Payments Interface)
UPI stands for Unified Payments Interface. It is a system for instant,electronic payments through user’s smart phone. It is an advancedversion of Immediate Payment Service (IMPS) which was used totransfer money between bank accounts. Like IMPS, UPI willfacilitate round-the-clock funds transfer service.
Features of UPI
• It authenticates the identity of the user like a debit card does using the phone as a tool instead of a separate card.
• It works 24x7, 365 days.
What do you need?
• A Smartphone with UPI application (app)
• A bank account
PROCESS OF ONLINE TRANSACTION THROUGH UPI
A simple 3 step process to make Online Transactions through UPI
FEATURES AND BENEFITS OF UPI
UPI eliminates the need to share User’s name, bank account number,
IFSC code, or bank branch.
UPI also eliminates the use of physical tools like debit cards.
No need to use multi-step processes like net-banking, which are prone to
phishing due to insecure frameworks.
Very simple application and can be used by anyone.
Instant and secure authentication and can be initiated anywhere.
Opens up the pathway for a completely cashless digital society.
Can be used to send a request for money, like an invoice.
Customers can also use UPI to make online payments of utility bills and
school fees.
UNIFIED PAYMENTS
INTERFACE (UPI)
PAYMENT APPS
• Smart Phone.
• Immediate Payment Service (IMPS)
• Your phone is the tool (instead of a separate card)
• No need to share User’s name, bank account number, IFSC code, or bank branch.
• Can be used to send a request for money, like an invoice
• Customers can also use UPI to make payments of utility bills and school fees.
E-WALLET
WHAT IS E-WALLET
E-wallet stands for electronic wallet
Electronic card which is used for transactions made online
through a computer or a smartphone.
The utility of e-wallet is same as a credit or debit card. An
e-wallet needs to be linked with the individual's bank
account to make payments.
The main objective of e-Wallet is to make paperless money
transaction easier.
FEATURES OF E-WALLET
User can make payments for groceries, online purchases, and flight tickets etc.
Protected with password
Type of pre-paid account in which a user can store his/her money for any future online transaction
HOW DOES IT WORK?
E-wallet has mainly two components: Software
and Information
Software component : Stores personal
information and provides security and encryption
of the data
Information component : Database of details
provided by the user which includes their name,
shipping address, payment method, amount to be
paid, credit or debit card details, etc.
HOW DO I USE E-WALLET?
For Consumer: Download the app on your device.
Sign-up by entering the relevant information. The
user will receive a password.
Load money using debit/credit card or Netbanking
After shopping online, the e-wallet automatically fills
in the user's information on the payment form.
Once the online payment is made, the user is not
required to fill the order form on any other website as
the information gets stored in the database and is
updated automatically.
FOR MERCHANT
Merchant downloads the app on his/her device
Sign-up by entering the relevant information.
The user will receive a password.
Self-declare yourself as a merchant.
Start accepting payments.
WHAT DO I NEED TO START USING AN
E-WALLET?1. Bank Account
2. Smart phone
3. 2G/3G/4G connection
4. A free wallet app
MUST DO PRACTICES
Register your mobile number at bank for regular
information by SMS for every transaction
Never share your PIN to anyone
Transact at only trusted merchants
While at ATM, ensure no one is looking over your
shoulder.
E-WALLET
It is India's most downloaded free Android application
Possible to make quick payments using Unified Payment Interface or UPI.
1) The BHIM app is currently available on the Android platform. The
version for Apple devices or iOS platform is expected to be launched
soon. BHIM has been developed by the National Payment Corporation of
India (NPCI).
2) UPI is built over the IMPS infrastructure and allows you to instantly
transfer money between bank accounts.
3) There are no charges for making transactions through the BHIM App.
But your bank might levy charge as UPI or IMPS transfer fee
BHIM
(Bharat Interface for Money)App
THANK YOU